Hi everyone
Being an Architect myself I also keep on looking for business related to my field as well which has potential to outgrow industry and peers and become multibaggers in future. I closely followed HSIL and finally gotinvested in it. Similarly I researched about Saint Gobain, Asahi India, 3M India, Kajaria, Somany, Akzo Nobel, Berger paints, BASFetc.
I zeroed on Akzo Nobel and BASF India. Listed below is brief summary of what I could make out of regarding Akzo Nobel India. In Interior circles their brand Dulux is preferred and in Coatings - the Aluminum Powder coating their brand Interpon is always on project manager wish list.
I have been reading and following the DULUX, Dyna and Interpon brand owner Akzo Nobel India. Looking to become second largest decorative paint company in India after Asian Paints after acquiring ICI paints few years back. Since then its in consolidating mode with lots of other companies getting merged into it. Currently they have the 4th highest market share of 10%in India in decorative paint category.
What is interesting is that in last 3 decades they have taken biggest capex plan recently clearly reflecting its commitment. They have the aspirations of of 3x revenue growth incoming 5 yrs. Without any capacity enhancement they have been double their revenue through product innovation and mix.
Unlike other peer companies they have no debts on their balance sheet and huge cash surplus will aid in capacity enhancement going forward.
I strongly believe that rapid urbanization in India, Rural market penetration , pick up of economy in coming times will aid their growth. Being an MNC company also add to fundamentals of the company.
To me its a classic Warren buffet kind of pick, with all parameters like Brand Value, innovation led company, ROE, ROCE, a great old company with great products, not so highly valuations, No Debt.
In Hindsight criticism can come from why it has been lagging for so may yrs in India while elsewhere its consider as World leader.
Would invite comments from everyone.